Microsofts RedInk Xbox

Source: bschool.washington.edu
Topic: Xbox 360

Short Desciption:
Xbox 360 Wireless Controller. Hasslefree highperformance precision wireless gaming features. the Xbox. . Guide Button for quick access to digital movies ...

 

Content Inside:
Microsofts RedInk XboxPage 1University of Washington Business SchoolMicrosofts RedInk Xbox*On November 22 2005 Microsoft released its new generation Xbox 360 in North America.The Xbox is a popular videogame system that competes directly with Sonys PlayStation and Nintendos forthcoming Revolution. See Exhibit 1 for an illustration of the Xbox 360 and a listof features announced in Microsofts press release.On November 22 the day of the Xbox 360 release iSuppli of El Segundo Californiaannounced its teardown analysis of a production unit. The company described its teardownanalysis as applied market intelligence primarily targeted for use by analysts in assessing theeconomics of the Xbox for Microsoft its suppliers and competitors.1iSupplis analysisrevealed that parts alone totaled $525 for the Xbox 360 which retailed for $399 (Exhibit 2).2Microsoft spokesperson Molly O'Donnell said the company does not comment or provideguidance on Xbox 360 cost information. Shares of Microsoft were down $0.23 to $27.69 in recent trading. (RedHerring.com November 25 2005)The first commercial videogame system3The concept of the modern home videogame is attributed to Ralph Baer a 29year old TVengineer who worked at Loral a TV manufacturing company in 1951. Ralph wantedcustomers to be able to play games on their TV but his boss rejected the idea. Fifteen yearslater in 1966 Ralph Baer was still working on his thwarted TV game idea and designed a seriesof prototypes. A prototype built in 1968 played ball & paddle and target shooting games.After several demonstrations to TV manufacturers Magnavox signed an agreement with Baerscompany in 1971 and released the first commercial home videogame system the Odyssey in May 1972. The game console retailed for $100 and was only distributed through Magnavox dealers. Each of the 12 games required its own circuit board. Video was in black and white*This case in under development by Robert M. Bowen of the University of Washington Business School. Alls ...